What is compounding?
We aren't defining the mathematical term, the achievement of academics is to apply them in daily life.
The wonder of compounding (in investing terms) is to make your money work, to transform it into a state-of-the-art, highly powerful income-generating tool. Compounding is the process of generating earnings on your asset's reinvested earnings. Compounding works on two basic premises: re-investment of earnings and time.
Simply put, the longer time you leave your money to compound, the higher is the wealth you generate.
No comments:
Post a Comment